UK growth rate might accelerate to 1.3% in third quarter

British economic growth rate might accelerate to 1.3 percent in the third quarter of this year, nearly double the 0.7 percent of the previous three-month, said Capital Economics, an economic forecaster based in London, on Thursday. Like the manufacturing and construction surveys already released, the UK CIPS services survey softened a touch in September, but they all still point to very strong economy growth in third quarter, said Capital Economics. According to reports released by Markit and Chartered Institute of Purchase & Supply this week, British Purchasing Manager's Index of manufacture, construction and services industries were 56.7, 58.9 and 60.3 respectively, marking the sixth, fifth and ninth consecutive month of activities expansion. The average level of the index over the third quarter as a whole points to services output rising by more than double the 0.6 percent quarterly rise seen in the second quarter, said Capital Economics. The service sector dominates the UK economy, contributing around three quarters of gross domestic product (GDP), according to the date releaed by the Office of National Statistics. And a weighted average of all three surveys points to quarterly GDP growth in the third quarter of about 1.3 percent, said the forecaster. Chris Williamson, Chief Economist at Markit, also argued that collectively the surveys suggest the economy will have expanded by as much as 1.2 percent in the third quarter, its fatest growth rate since the pre-crisis days of 2007. "Admittedly, the official data that we have had so far suggest that this might be a bit of a tall order. Nonetheless, GDP growth should have at least beaten the second quarter's 0.7 percent quarterly rise. And the surveys suggest that the fourth quarter is starting on a strong note too," said Capital Economics. Overall, then, more evidence that the recovery is becoming well-entrenched, added the forecaster.